đ°Advantages and Disadvantages
Last updated
Last updated
Stability:
By being pegged to the value of USDT, the oldest and most-capitalized stablecoin among all others, the value of VNST will remain stable by international standards. This provides users and investors with absolute peace of mind, minimizing the risks associated with unwarranted fluctuations in the cryptocurrency market.
Prompt Transaction:
With its high-speed capabilities, VNST transactions become efficient and prompt. There is no need to wait for extensive transaction confirmations or concern about conversion delays. VNST provides a transactional experience that exceeds the requirements of users.
Security:
Developing VNST on a blockchain platform increases security. VNST is dedicated to establishing a secure, transparent environment in which users can readily audit their holdings. Users can easy knowing that their private information and assets are adequately protected.
Utility:
VNST is not only a digital asset, but also a trusted connection between users and the decentralized cryptocurrency market. This connection makes it less difficult for newcomers to discover the world of cryptocurrencies.
Scalability:
The scalability of VNST is not limited to transactions. It enables integration with a variety of applications and services, ranging from simple transactions to complex financial applications. VNST enables everyone to fully leverage blockchain technology and cryptocurrencies.
Multi-Functionality:
VNST is continuously evolving to offer users a range of features through partnerships, including:
Spot, Swap, and Futures (Already in use)
Yield, Farming, and Staking (Coming soon)
Margin and Lending (Coming soon)
VNST collaborates with multiple partners to bring diversity to users. Consequently, users can use VNST as a tool to generate profits and benefit
Dependence on USDT Stability:
The stability of USDT directly affects the value of VNST. If USDT's value declines, so will the value of VNST. This inherent limitation is common among stablecoins, where fluctuations in the value of the underlying collateral asset impact the stablecoin's value.
Liquidity Risk:
During its operating phases, the management of liquidity risk remains a top priority, determined by a variety of subjective and objective factors. It needs constant monitoring and precise management procedures to avoid negative consequences or potential losses for parties such as projects, users, and partners, among others.
Within the context of its capabilities and in the response to market shifts, VNST will establish specific contingency plans for certain scenarios, such as de-peg issue of stablecoin value, which could impact reserves on a local or global scale, causing temporary liquidity shortages.
To solve this challenge during the initial phase, VNST intends to restrict the maximum circulating supply of VNST to 100 billion tokens while using stringent control mechanisms, sophisticated warning systems, and implementing of the most latest risk management standards. This strategy approach seeks to encourage efficient management of liquidity for the project, ensuring long-term liquidity and cultivating trust among VNST users.
Technical Risks:
Technical vulnerabilities, such as Smart Contract exploits, can be mitigated through the implementation of user wallet KYC processes, abnormal transaction alert features, and transaction locks on the Smart Contract.
Legal Risks:
Legal risks are addressed by ensuring that VNST will not be used as a means of payment for all cases in the Vietnamese market, potentially alleviating legal concerns.
Moral Hazard:
Transparent information control and a single source of information help to mitigate moral hazard concerns, promoting accountability and trust.